Posted To: MND NewsWire
Investors who purchase distressed loans through the FHA’s Distressed Asset Stabilization Program (DASP) are going to have to toe a stricter line when it comes to how those loans are managed. The Department of Housing and Urban Development (HUD) has announced a series of “enhancements” to the program in response to claims by lawmakers and others that buyers have been reluctant to work with homeowners and quick to foreclose. According to a press release from HUD, the changes to the program would have purchasers of severely delinquent mortgages offer qualified borrowers principal reductions and protection from “payment shock.” The new rules would also prohibit investors from abandoning low-value properties in neighborhoods hard-hit by foreclosures in order to prevent blight and increase opportunities…(read more )